New York Tipped Minimum Wage 2026
Last updated: · Source: New York Department of Labor
New York (Statewide) · Tipped Employees
Plus tips, to reach $16.00/hr full minimum wage
Statewide Cash Wage
$10.65/hr
Maximum Tip Credit
$5.35/hr
Statewide Full Minimum
$16.00/hr
How the New York Tipped Minimum Wage Works
New York regulates tipped wages through its Hospitality Industry Wage Order, which sets a tip credit structure similar in shape to the federal FLSA but at New York's higher wage floor. A "food service worker" (an employee who customarily and regularly receives more than $30 a month in tips) may be paid a direct cash wage as low as $10.65/hr statewide, with the employer claiming a tip credit of up to $5.35/hr against the full $16.00/hr minimum wage. As with federal law, the employer must give advance written notice of the cash wage, the tip credit amount, and the employee's right to retain all tips outside a valid pool, or forfeit the credit.
A tip credit is a ceiling an employer is allowed to claim against tips actually received, not a guarantee — if direct wages plus tips fall short of the full minimum wage in a workweek, the employer must make up the difference.
| Component | Statewide | NYC / LI / Westchester |
|---|---|---|
| Direct cash wage | $10.65/hr | $11.35/hr |
| Full minimum wage | $16.00/hr | $17.00/hr |
| Maximum tip credit | $5.35/hr | $5.65/hr |
When Tips Fall Short of Minimum Wage
The tip credit is a ceiling the employer is allowed to claim, not a guarantee. If a food service worker's direct wages plus tips don't reach the applicable full minimum wage ($16.00/hr statewide, or $17.00/hr in NYC, Long Island, and Westchester) in any workweek, the employer must pay the difference directly. New York calculates this shortfall per workweek, the same standard used federally, and separately requires detailed wage statements under the state's Wage Theft Prevention Act that make the cash wage, claimed tip credit, and any make-up payment visible to the employee.
Servers vs. Bartenders vs. Delivery Drivers
New York's Hospitality Industry Wage Order applies the same tip credit framework to servers and bartenders alike as "food service workers," but the roles differ in practice:
- Servers are the clearest fit for the tip credit given direct, regular customer tipping, and are commonly pooled with bussers and hosts.
- Bartenders qualify under the same cash wage and credit ceiling, though bar tip pools are often structured separately from the dining room, sometimes including barbacks.
- Delivery drivers face additional complexity in New York: beyond the standard $30/month tip threshold for tip credit eligibility, New York City separately regulates minimum pay for app-based food delivery workers under its own delivery-worker pay standards, a different framework from the traditional restaurant tip credit covered on this page. Restaurant-employed delivery drivers (not gig-platform couriers) are evaluated under the standard tip credit eligibility test.
Overtime Rules for Tipped Workers
New York calculates overtime the same way federal law does: off the full minimum wage that applies to the employee's work location, not the reduced tipped cash wage. The overtime rate is 1.5 times the applicable full minimum wage ($16.00/hr statewide or $17.00/hr in NYC, Long Island, and Westchester), minus the same tip credit claimed for regular hours. Paying 1.5 times only the reduced $10.65/hr cash wage understates the required overtime rate and is a frequent source of wage claims in the restaurant industry.
Common Tipped Wage Violations
- Taking a tip credit without proper written notice: required under both federal law and New York's Wage Theft Prevention Act.
- Not making up shortfalls: failing to cover the gap when direct wages plus tips don't reach the applicable full minimum wage in a given workweek.
- Illegal tip pooling: including managers, supervisors, or owners, or including back-of-house staff while still claiming a tip credit.
- Miscalculating overtime: multiplying the reduced tipped cash wage by 1.5 instead of the full minimum wage that applies to the employee's location.
- Applying the statewide rate downstate: paying the lower statewide tipped rate to a worker actually located in NYC, Long Island, or Westchester, where the higher regional rate applies.
- Unlawful deductions from tips: docking tips for walkouts, breakage, or withholding more from credit-card tips than the actual processing fee.
- Excessive non-tipped side work: requiring more than a reasonable amount of unrelated non-tipped duties while still paying the tipped rate.
Frequently Asked Questions
New York's statewide tipped minimum wage for food service workers is $10.65 per hour in 2026, with employers allowed to claim a tip credit of up to $5.35/hr toward the full $16.00/hr minimum wage. In New York City, Long Island, and Westchester County, the full minimum wage is higher ($17.00/hr) and the tipped cash wage is $11.35/hr accordingly.
If a tipped employee's direct cash wages plus tips don't reach the applicable full minimum wage in any workweek, the employer must pay the shortfall. Like the federal rule, this make-up obligation is calculated per workweek, not averaged across a pay period.
No. New York City, Long Island, and Westchester County follow a higher regional minimum wage of $17.00/hr, with a tipped cash wage of $11.35/hr, both higher than the $16.00/hr statewide rate and $10.65/hr statewide tipped rate that apply upstate.
No. As under federal law, a New York employer must notify a tipped employee in advance of the cash wage being paid, the tip credit amount being claimed, and the employee's right to retain all tips except through a valid tip pool, before the tip credit can be applied. New York also requires specific wage notice and pay stub disclosures under the state Wage Theft Prevention Act.
New York's Hospitality Industry Wage Order applies the tip credit framework to "food service workers" broadly, which covers both servers and bartenders at the same $10.65/hr statewide cash wage. In practice, tip pool structures often differ (bartenders are frequently pooled separately from servers, or with barbacks), but the legal minimum cash wage and credit ceiling are the same regardless of title.
Only if they customarily and regularly receive more than $30 a month in tips and the employer satisfies the same notice, recordkeeping, and tip-retention requirements as for any other tipped role. New York State has separately regulated app-based delivery workers through its own minimum pay standards for food delivery platforms, which operate differently from the traditional restaurant tip credit and are outside the scope of this page.
As under federal law, overtime for New York tipped employees is calculated off the full minimum wage that applies to that worker's location, not the reduced tipped cash wage. The overtime rate is 1.5 times the full minimum wage, minus the same tip credit claimed for regular hours: an employer that pays 1.5 times only the $10.65/hr cash wage is underpaying.
No. New York, like federal law, prohibits including managers, supervisors, or owners in any tip pool. Back-of-house staff who don't customarily receive tips can only be included in a tip-sharing arrangement if the employer forgoes the tip credit entirely and pays the full minimum wage in cash.
The most frequently cited violations include: taking a tip credit without the required written notice, failing to make up shortfalls when tips fall short of the full minimum wage, unlawful tip pools that include managers or ineligible back-of-house staff, miscalculating overtime off the reduced tipped rate instead of the full minimum wage, and requiring excessive non-tipped side work while still paying the tipped rate.